If the past two years have been any indication, logistics can take surprising turns even when current economic trends would dictate otherwise. 2019 might not be any different, with some hold-over trends from last year, and a few new ones coming to the forefront.
Logistics Consolidation Continues
Over the past two years, major carriers have been consolidating, with the largest in control of the main shipping lanes. Shippers will have fewer options among large carriers, putting even more control on prices and revenue in the hands of the trucking industry. Simultaneously, we are seeing smaller carriers launching to cover regions the major fleets don’t. Smaller independent trucking companies are also able to offer services that larger carriers cannot, such as “last mile delivery.”
Eyes Are on Big Data and Blockchain
Big data is taking on international and domestic shipments. Blockchain technology is secure, eliminates paper, and reduces human error. Being able to monitor shipments and the condition of hard goods can save lots of money for fleets, and open new positions within the trucking industry. Keeping producers, manufacturers, shippers, fleet owners, and drivers on the same page just by glancing at information will revolutionize logistics. From small organic farms to large international electronics and automotive companies, big data is giving the trucking industry new insights to make supply chains safer and more efficient.
The Driver Shortage Will Continue to Grow
Some trends are going to have to be factored into the trucking industry, and the growing driver shortage is one of them. The economy is expanding, and placing a much larger demand on drivers and capacity trucks. Simultaneously, a good portion of the workforce in the trucking industry is reaching that retirement bracket. With legislation and legal concerns keeping driverless trucks on the back burner, carriers need to focus more efforts on recruiting and training new drivers to meet upcoming demands and fill the gaps left by retiring truckers.
Payments Are Faster and More Secure
Running safe, secure, and efficient logistics requires capital. The biggest hurdle in ensuring fleets have the capital necessary to expand in 2019 means reducing the strain caused by staggered payment schedules. 2018 saw more fleets make the switch from waiting on payments from clients to using factoring to improve and speed up the rate at which revenue is received. This is one trend that is becoming a constant throughout the trucking industry. Waiting 30 days or longer for payments is going the way of the dinosaurs as more trucking companies switch to freight factoring to receive revenue within 24 hours.
Express Freight Finance provides truckers and fleets an edge by providing the most comprehensive and efficient freight load factoring in the United States. Contact our offices today and make 2019 your most productive and lucrative year to date.